5 Things Most People Don’t Consider When Starting Their First Business

Published on: 12 December 2018 Last Updated on: 14 December 2021

Today, more people than ever are starting their own first business, but not all of them are successful. In fact, only one in ten startups will survive their first year of trading and go on to turn over a profit. If you’re thinking of starting your own company, it’s important to be prepared for all the obstacles and potential setbacks that you are likely going to face. If you want to make sure that your business is the one in ten that succeeds, it’s vital to be ready for the challenge. For many new business owners, overlooking some important aspects of starting a new company can quickly become their downfall. In order to help you avoid future issues, we’ve put together a handy list of common things people don’t consider when starting their own business.

1. Insurance To Look forward while Starting First business:

Starting your first business can be challenging if you do not have enough capital backup. You might assume that liability insurance is unimportant if your business doesn’t deal directly with members of the public. For example, if you’re planning to sell items online, you might not think that insurance is necessary since your customers won’t be visiting your shop in person. However, insurance may be needed depending on the type of products that you are selling, as it will help ensure that you are covered if anything goes wrong. No matter what you’re selling, general liability insurance is essential to protect your company from claims of bodily injury, associated medical costs, or damage to property.

2. SWOT Analysis and Business Plan:

You’re probably ready to get started with your business as quickly as possible but failing to put in the right amount of preparation and planning now can cause many issues for you down the line. Take the time to sit down and come up with a business plan that will help you make sure you are on the right track in the future. To be fully confident in your new venture, it’s essential to know that your business is going to work. Completing a strengths, weaknesses, opportunities, and threats (SWOT) analysis will help you position yourself strongly in the market and enable you to plan for the future.

3. Legal Considerations:

Before you begin trading, it’s important to make sure that you’re aware of all the legal implications and potential hurdles you could face as a business owner. As an entrepreneur, no matter what kind of business you’re thinking of starting, your line of work is likely going to be governed by a wide range of rules, regulations, and laws that you will need to adhere to. Whether it’s licensing for operation or professional standards that you must meet, you’ll need to be fully prepared for the legal implications of business ownership. It may be worth consulting with a business lawyer before you begin; they will be able to advise you on the best steps to take.

4. Establishing a Reputation:

Before you make the leap into starting your own business, it’s a wise idea to set yourself up for success by establishing a reputation for yourself and your brand in the industry. Networking is key to building a strong foundation for yourself and your business, making it easier for you to get your brand off the ground. Connect with industry experts, like-minded entrepreneurs, and potential leads both in-person and online. Use social media platforms such as LinkedIn to get in touch with people who could potentially help you build and expand your network, and don’t be afraid to get out there at trade shows, networking conferences, and other relevant business events.

5. Keep on Top of Admin:

Starting as you mean to go on is definitely one of the most important factors when it comes to business admin. Tasks such as bookkeeping, payroll, and inventory management can quickly become unmanageable if you don’t make sure to keep on top of them from the beginning. If possible, you may want to consider outsourcing these tasks – today you can find freelancers or entire companies that you can outsource the work to. This makes it much easier for you to manage since you can rest assured that the work is being handled by professionals with the know-how and experience necessary to support your business success. If outsourcing isn’t possible, there are many alternatives to consider. When it comes to accounting, you can find many free or inexpensive online tools to make the process much easier for you to manage. Take some time to research different software programs that you can use to make managing the admin side of your company easier from the start.

When it comes to starting your own first business, it’s important to make sure that you are fully prepared to propel your new brand to success. These are some of the main factors that people don’t think about when starting a new business; don’t fall into the same trap.

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How To Become A Successful Team Leader?

Some people choose to seek a leadership path. Being a team leader isn’t the same as being a boss. You can not expect that people will do everything you want just because you have this job title. A talented and ambitious leader is one who walks ahead of the team and clears all the branches on the way with a machete. Leaders know the answers to most questions and are capable of taking decisions. As you can understand, it is not the easiest job. Team leaders balance between employers and employees while trying to get some work done. On the other hand, this role can give you the freedom to create and a lot of satisfaction. Here is what you need to know in order to become a successful team leader: Educate yourself: To lead people, you should be a detail-oriented professional yourself. It’s recommended to gain valuable work experience before getting promoted to a leadership role. Before becoming a team leader, try out different jobs and don’t hesitate to ask your co-workers about their work duties during lunch breaks. It will help you to find a connection with team members and delegate the tasks to the right people. As a present or future team leader, you should never stop educating yourself. Consider getting a diploma of work health and safety in order to develop your management capabilities. Also, you will be able to find a lot of leadership courses online. So, refresh your knowledge from time to time and don’t think you are the smartest person in the room because it might be wrong. Delegate tasks: Team leaders have a lot of responsibilities. However, you are not alone in this; you have a team that can help you out whenever you need it. Sometimes people can’t see how stressed or overloaded with work you are. As a team leader, you should start delegating tasks to the right people without blaming anyone for not reading your mind. You should be leading people, not doing their job. Before you start delegating tasks, talk to your team members and uncover their talents and skills. When you assign a project to someone, you should be clear about the deadline and all the details. Your team members should feel your presence, so remain open to discussion. Let them know that you are there to guide them. Check new hires by giving them smaller tasks. It’s the way to understand what they are capable of doing. Also, it will help to build their competence and confidence in the workplace. You might make mistakes and delegate a task to the wrong person. If it happens, explain to the team member what exactly you want them to change. Once again, no one can read your mind! Keep track of these situations and make sure it will never happen again. Get to know your team: To manage your team successfully, you should learn as much as possible about each member. Your team members have different goals, motivations, and intentions. So, your main task is to get to know people as soon as possible. For instance, you can ask the previous supervisor/ manager about their experience. Keep in mind that prism can distort reality, so don’t trust everything other people tell you about your team. Another way to get to know people is to schedule one-on-one meetings with them. Ask everyone about their short-term and long-term goals and what they would like to improve and learn. Feel free to use this information in the future - all people want to be heard and feel valued. Also, don’t keep yourself at a distance from everyone else in the office. Sit next to your team and let them observe you. It will make them think that you are an integral part of the team and that you don’t escape responsibilities. Once they see how hard-working and open you are, they will feel more comfortable around you. Don’t hesitate to hang out with your team members. Parties and other team-building activities have always been great icebreakers. Be a good person: Your team should trust and respect you. Obviously, the team members will not do it only because you command them to do that. You can only earn respect. To do so, you should behave appropriately. Here is what not to do: Gossip Put people down Steal business ideas Blame others for failures Think you always know best Do everything yourself Here is what you should do as a team leader: Get to know your team Listen carefully Help people grow professionally Resolve conflicts Delegate tasks Protect your team Be a good example The Bottom line: Being a team leader isn’t the easiest job in the world. You will have a lot of responsibilities and stress. However, you can apply leadership strategies to make it easier for yourself. You should spend more time with your team and understand what they are capable of doing in the company. Be a role model for them - the one who keeps the word and does the work on time. Read Also: 5 Key Leadership Skills For Entrepreneurs How To Become A Good Team Player At Work 4 Business Leadership Skills For Business Success

Lease Vs Buy: What’s Better For The USA Based Business

Small business owners face numerous considerations when deciding whether to purchase or lease a business facility. Once a business owner identifies their specific facility requirements and successfully locates the ideal property, they encounter another crucial choice: Should they buy or rent the property? This decision arises in two distinct scenarios: First, when the owner of the desired property is open to either selling or leasing it, and second when you have multiple options, some available for purchase and others for lease. To make this decision confidently, it's essential to evaluate the financial aspects and the determining factors that influence the suitability of leasing versus buying a business facility. Comparing The Economics Of Leasing Vs. Buying What should you go for when it comes down to lease vs buy for business? In business decisions, few choices are as pivotal as determining whether to lease or buy assets. This holds for many assets, from real estate to equipment, vehicles, and more. This decision can have significant financial implications for business owners, and understanding the pros and cons of leasing versus buying is crucial for informed decision-making. Let’s explore the economics of these two options, exploring the advantages and disadvantages of each to help business owners make the right choice for their specific circumstances. The Economics Of Leasing Leasing, as a financial arrangement, is a concept that extends beyond the realm of property and includes various assets such as vehicles, equipment, and even software. At its core, leasing is a method of obtaining the use of an asset for a specified period while making regular payments to the asset's owner, whether it's a lessor or a financial institution. The economics of leasing involve several key factors that affect the decision to lease rather than purchase outright. One of the primary economic benefits of leasing is the conservation of capital. When you lease an asset, you avoid the substantial upfront cost of purchasing it. This is particularly advantageous for businesses, allowing them to allocate their capital to other essential operations or investments. For individuals, it means not having to deplete their savings to acquire a costly asset, whether it's a car, a piece of machinery, or even a home. Leasing often offers more predictable and manageable cash flows compared to outright ownership. Lease agreements typically involve fixed monthly payments over the lease term, making it easier to budget and plan for expenses. Tax benefits can also make leasing an economically attractive option. In some cases, lease payments are tax-deductible as a business expense. This can lead to significant tax savings for companies. However, tax benefits can vary depending on the asset being leased and the specific tax regulations in place. However, There Are Economic Drawbacks To Leasing As Well: Long-Term Costs: Over an extended period, leasing can be more expensive than buying, primarily due to the cumulative cost of lease payments. No Equity Buildup: When you lease, you do not build equity in the asset. It remains the property of the lessor. Limited Control: The lessee must adhere to the lessor's terms and conditions, which can be restrictive. The Economics Of Buying The decision to buy an asset, whether a property, a vehicle, or any significant investment, is a fundamental economic choice with both immediate and long-term financial implications. Understanding the economics of buying involves considering various factors that impact the purchase decision and how ownership affects one's financial situation. One of the central economic aspects of buying is the upfront cost. When you decide to buy an asset, you typically need to pay the full purchase price, which can be a substantial one-time expense. This upfront payment represents a significant commitment of financial resources and can affect your liquidity, especially for big-ticket items like real estate or high-end machinery. Buying an asset often means having complete control and decision-making authority over it. You can customize, modify, or use the asset as you see fit. This sense of ownership can be economically empowering, allowing you to tailor the asset to your specific needs or preferences. Mortgages and loans are common financial instruments for buying high-value assets like real estate or vehicles. These arrangements enable individuals to spread the cost of the asset over time. While loans may involve interest payments, they make the purchase more accessible and can be financially strategic. However, Buying Also Has Its Economic Downsides: Higher Initial Costs: Purchasing assets often requires a substantial initial investment, burdening businesses with limited capital. Risk of Depreciation: Some assets, like vehicles and certain equipment, can depreciate over time, impacting their resale value. Maintenance Costs: Owners are responsible for maintenance and repairs, which can be costly. Reduced Flexibility: Selling owned assets can be time-consuming and might not be feasible in rapidly changing business environments. Factors To Consider When Making The Lease Or Buy Decision The lease vs. buy decision is critical and can significantly impact a business's financial health and long-term prospects. To make an informed decision, business owners must weigh several important factors. Here are key considerations to keep in mind: Financial Considerations The financial aspect is often the cornerstone of the lease or buy decision. One of the initial considerations is the upfront costs. Buying a property typically involves a substantial financial commitment, including a down payment, closing costs, and potential expenses for renovations or furnishing. On the other hand, leasing usually requires a security deposit and the first month's rent, which are notably lower than the upfront costs of buying. Another critical financial factor is the monthly expenses associated with each option. While leasing tends to result in lower monthly costs than buying, owning a property often entails higher mortgage payments. However, these payments contribute to building equity in the property. Additionally, the potential for property appreciation is a financial consideration, as owning a property allows you to benefit from the property's value increase over time. Conversely, leasing may increase annual rent, impacting your financial planning. Lastly, the tax implications are significant. Property ownership can provide tax benefits, such as deductions for mortgage interest. In contrast, leasing does not offer these tax advantages but may simplify financial management. Long-Term Goals Your long-term objectives play a pivotal role in the lease or buy decision. Buying might be the more suitable choice if you are interested in benefiting from property appreciation and potentially selling the property for a profit. On the other hand, if flexibility is a priority, such as the ability to relocate or change your living situation without the responsibilities of property ownership, leasing provides greater adaptability. Understanding your long-term goals is crucial in deciding to align with your aspirations. Responsibilities and Maintenance The responsibilities and maintenance associated with each option are essential factors to consider. Property maintenance costs, such as repairs and upkeep, are the responsibility of property owners. Leasing, however, often shifts these responsibilities to the landlord responsible for maintaining the property. Moreover, property ownership allows for customization and renovation, allowing you to modify the property to your preferences. In contrast, leasing may come with limitations on modifying the property, as any alterations typically require landlord approval. These factors highlight the practical aspects of the lease or buy decision and the degree of responsibility you are willing to undertake. Market Conditions The state of the real estate market at the time of your decision is a critical external factor. It can significantly influence the cost-effectiveness of leasing or buying. Buying may be more advantageous in a buyer's market, characterized by lower property prices and favorable interest rates. In contrast, leasing might be the more prudent choice in a seller's market with rising property prices, as property prices may be inflated, making buying less cost-effective. Duration of Stay Your anticipated duration of stay in the property is a key factor. For a short-term stay, leasing is often a more practical option. Buying may not provide enough time to build equity and recover the upfront costs of property ownership. Conversely, plan to stay in the property for an extended period. Buying can be financially advantageous in the long run, allowing you to benefit from property appreciation and build equity over time. Making The Decision The decision to lease or buy should be based on your business's unique needs, financial situation, and long-term goals. Conducting a thorough cost-benefit analysis, factoring in your specific circumstances, and considering how the economics of leasing or buying align with your business strategy is advisable. Read Also: How Business Owners Can Better Utilize Freelance Work 5 Office Organization Tips Every New Business Owners Must Know Alternative Business Financing – What Is It And How Do You Do It?

4 Ideas to Bring Your Team Closer Together

A University of Phoenix survey found that 70% of respondents cited being part of a dysfunctional team, and with Gallup reporting that poorly-managed work groups are 50% less productive on average, it’s easy to understand just how important a strong team is in the workplace. Bring your team closer together. Bringing your team closer together should be among your top goals for a successful business, utilizing these ideas can help achieve that. Multiple Ways You Can Bring Your Team Closer Together There are various ways you can bring your team closer together. For that, you have to make your choices in the right direction to achieve your goals in the correct manner. Host Friendly Competitions: A great way to build team spirit is to get everyone involved in a competition. A sporting event or another type of physical activity, like an office softball game, bowling, or even hosting a silly spoof on the Olympics, with an Olympic-style Games day that includes events like a spoon and egg races, are just a few different options. Everyone will be working as a team while having fun at the same time, helping to encourage stronger bonds and improve communication. Team Dinners: Aim to occasionally get the team together for an after-work dinner so that staff members can get to know everyone on a more personal level, enjoying conversations that aren’t necessarily work-related. If coming home late is not something your employees can or want to do, you might consider weekly team lunches as they can help foster better relationships and a stronger team too. Play Games: Playing office games occasionally can help employees become more engaged, encouraging staff to think about work as something more than just a steady paycheck and benefits. They can also prevent boredom and provide opportunities for getting the entire team closer. Truths and lies is a good one as a fun and easy way for staff to get to know each other better. Invite workers to sit in a circle facing the center, and then ask them to take a few minutes to come up with two truths and one lie about themselves. Everyone else can try and figure out which is which. Just about everyone enjoys playing Name that Tune. It’s just what it sounds like: simply play about a 5-second slice of a random song. The first person to guess it right wins. Ring the Bell of Success: Recognized employees are happy employees which makes for a stronger team. Everyone will get excited when they hear the ring of the “Bell of Success,” encouraging staff to root for one another. All you need to do is add a bell to your workplace, and when someone achieves a goal such as getting a new client or making a sale, they get to ring the bell while everyone cheers. Read Also: 5 Informal Team Building Activities To Break The Ice Among Co-Workers Top 4 Creative Team Building Ideas For A Call Center Industry This 2016

5 Things Most People Don’t Consider When Starting Their First Business

1. Insurance To Look forward while Starting First business:

2. SWOT Analysis and Business Plan:

3. Legal Considerations:

4. Establishing a Reputation:

5. Keep on Top of Admin:

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Content Rally

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

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Related

How To Become A Successful Team Leader?

Lease Vs Buy: What’s Better For The USA Based Business

4 Ideas to Bring Your Team Closer Together

5 Things Most People Don’t Consider When Starting Their First Business

1. Insurance To Look forward while Starting First business:

2. SWOT Analysis and Business Plan:

3. Legal Considerations:

4. Establishing a Reputation:

5. Keep on Top of Admin:

Share this Article

A Well-Oiled Trade Show Machine: The Ones Running the Show

Benefits Of A Strong Governance Culture For Your Business

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

Leave a Reply

Popular

Follow Us

Recent

Related